Do you need extra cash, but you also want to lower your monthly mortgage payment? That’s exactly what refinancing your mortgage can help you to accomplish.

A house is the largest purchase any of us is likely to make in our lifetime. Likewise, your mortgage payment is likely the largest payment you pay every month. If you’ve owned your home for more than a couple of years, you may have built up equity in your home. Equity is the difference between the value of your home and the principle balance of your mortgage loan. When you refinance your mortgage, you can take advantage of the equity you have built up in your home to access cash.

Maybe you need cash to finance a college education, take a long dreamed about vacation, remodel or renovate your home, or simply consolidate debt. All of these things can be accomplished with a mortgage refinance.

Lower Refinance Rate, Lower Monthly Payments

Interest rates change all the time. When you purchased your home, certain criteria like your credit rating and the amount of your down payment influenced the interest rate you received.

Have you ever heard the saying, “the one constant in life is change?” This is especially true with financial markets and interest rates. They are constantly changing. With the Federal reserve on a rate cutting mission to stimulate the economy, mortgage interest rates have decreased significantly from the highs just a few short years ago.

By refinancing your mortgage now while interest rates are lower, you’ll be able to exchange a higher interest rate loan for a lower one. Lower interest rates will enable you to either pull cash from your equity or lower your monthly mortgage payment, or both.

Shorten the Length of Your Mortgage when Refinancing

A significant advantage of home refinancing is that you can shorten the term of your mortgage (or number of years it takes to repay your mortgage.) With a low rate refinance mortgage, you may be able to reduce the number of years it takes to repay your loan and keep your monthly payments exactly the same.

Get out of an Adjustable Rate Mortgage and into a Fixed Rate Mortgage

When interest rates are low, adjustable rate mortgages (ARMs) are extremely poplular. However, as interest rates increase, adjustable mortgage rates and monthly payments increase too. Many borrowers who got into adjustable rate mortgages just a few years ago have found it increasingly difficult to manage the obligations. If you want the security of knowing that your monthly mortgage payment will remain the same over time without increasing and pushing your budget over the top, then Refinancing out of an adjustable rate mortgage and into a fixe rate refinance mortgage is the way to go.

Access Cash from your Home Equity - Cash-out refinancing

One way to get your hands on extra cash is to tap into the equity you've built in your home and do a "cash-out" refinancing. Tapping into the equity in your home can provide much needed cash for special projects, remodeling or renovating your home, sending your kids to college or paying off high interest debts. Best of all, the money from a cash-out mortgage refinance may be tax deductible. Consult your financial advisor for additional details

Say Goodbye to PMI

If you couldn’t afford a down payment of 20 percent when you purchased your home, you may have been required to purchase Private Mortgage Insurance (PMI) or in the case of an FHA Mortgage, Mortgage Insurance Premium (MIP.) If your house has increase in value since you purchased it to the point where you owe less than 80% of the value of the home, you no longer need PMI. Refinancing is a great way to get rid of that unnecessary premium and lower your payments.

There are many benefits to mortgage refinancing and with interest rates currently very low, NOW is the time to act.

Actual payments will vary based on your individual situation and current rates or lenders in our matching network.

Some products may not be available in all states.

Lending services may not be available in all areas.

Some restrictions may apply.

Based on the purchase/refinance of a primary residence.

We assumed (unless otherwise noted) that: closing costs are paid out of pocket; this is your primary residence and is a single family home; debt-to-income ratio is less than 45%; and credit score is over 720.

The lock period for your rate is 30 days.

If LTV > 80% PMI will be added to your monthly mortgage payment.

Max LTV for FHA is 97% for purchase and rate/term refinance - 95% for cash out refinance.

For FHA Loans if LTV > 80% - the payment will include a one time upfront mortgage insurance premium (MIP) at 1.5% of the base loan amount and a monthly MIP calculated at 0.50% of the base loan amount. The 0.50% monthly MIP will be paid until the loan reaches 78% LTV, provided the MIP has been paid for a minimum of 5 years. All loan amounts subject to FHA maximum loan limits in your area.

The example provided is a quote provided by one of the lenders in our matching program network. LenderQuotes.net is not a lender in any transaction. Rates & Terms are subject to change without notice.

Disclaimer: We are not affiliated with any government agencies, including FHA, VA or HUD. For more, read our Terms of Service.